News
Saehan Bancorp Reports First Quarter Results
LOS ANGELES-(Business Wire)-May 6, 2008 - Saehan Bancorp (OTCBB:SAEB) today reported results for its first quarter ended March 31, 2008.
Net income for the first quarter of 2008 was $925,000, or $0.06 per diluted share, compared with $1.4 million, or $0.12 per diluted share a year ago. The return on average equity for the first quarter of 2008 was 5.93 percent and the return on average assets was 0.46 percent compared with 10.52 percent and 0.84 percent, respectively, for the first quarter of 2007.
Other highlights for the first quarter of 2008 included:
— Total assets increased $184.9 million, or 27.3 percent from the same period a year ago.
— Net loans increased $154.8 million, or 27.0 percent, over the same period a year ago.
— Total deposits increased $124.0 million, or 23.0 percent, over a year ago.
— Net interest margin was 3.64 percent, compared with 4.67 percent for the first quarter of 2007.
— Efficiency ratio remained the same at 69.8 percent, compared with the first quarter of 2007.
— The ratio of nonperforming loans to net loans was 2.17 percent compared with 0.41 percent at March 31, 2007.
— Noninterest income was $1.4 million, compared with $2.0 million for the first quarter of 2007.
— Noninterest expense was $6.0 million, compared with $6.4 million for the first quarter of 2007.
"First quarter results reflect the impact of a challenging economic environment," said Benjamin Hong, president and chief executive officer. "Despite the difficult operating environment, management continues to focus on the execution and implementation of its long-term strategic plan. The bank achieved its loan and deposit growth targets as planned, but the profitability suffered due to the adversarial interest rate environment."
Net interest income before provision for loan losses was $7.1 million in the first quarter of 2008 compared with $7.2 million in the same period a year ago. Net interest margin for the first quarter of 2008 was 3.64 percent compared with 4.67 percent in the first quarter a year earlier. Net interest margin was adversely affected by the Federal Reserve's decision to aggressively lower the Federal Funds Rate during the quarter and the increase in non-accrual loans in the first quarter of 2008.
Noninterest income in the first quarter of 2008 totaled $1.4 million, compared with $2.0 million a year ago. The reduction was primarily attributable to a $790,000 decrease in gain on sale of loans, partially offset by a $124,000 increase in service charges on deposit accounts. Gain on sale of loans declined substantially as a result of significantly lower SBA market activity and reduced sales premiums paid on SBA loans sold to the secondary market.
Noninterest expense for the first quarter of 2008 was $6.0 million, a decrease of $455,000 from the first quarter last year. The decrease in noninterest expense for the first quarter of 2008 was primarily attributable to lower employee compensation expense, partially offset by higher occupancy and equipment expenses. The efficiency ratio for the first quarter of 2008 was 69.8 percent compared with 69.8 percent in the first quarter of 2007.
Nonperforming loans were $15.6 million at March 31, 2008 up $13.3 million from $2.4 million at March 31, 2007. Nonperforming loans represented 1.82 percent of total assets at March 31, 2008. The provision for loan losses was $1.1 million for the first quarter of 2008 compared with $660,000 a year ago.
Total assets were $861.3 million as of March 31, 2008— representing an increase of $184.9 million, or 27.3 percent, over the $676.4 million in total assets reported on March 31, 2007. Total deposits as of March 31, 2008 increased $124.0 million, or 23.0 percent, to $662.4 million from $538.4 million as of March 31, 2007.
Shareholders' equity increased to $62.6 million at March 31, 2008 from $54.4 million at March 31, 2007. Shareholders' equity primarily increased as a result of the company's earnings and exercise of stock options. Capital ratios continue to be well above the "Well-Capitalized" guidelines established by the regulatory agencies. The Leverage Ratio was 10.31 percent, the Tier 1 Risk-based Capital Ratio was 10.63 percent and the Total Risk-based Capital Ratio was 11.75 percent.
About Saehan Bancorp
Saehan Bancorp is a bank holding company with headquarters in Los Angeles, California. Its wholly owned subsidiary, Saehan Bank, offers a comprehensive range of financial solutions to meet the needs of the Korean-American community in Los Angeles. Saehan Bancorp is committed to satisfying customers and creating shareholder value. Its ten retail branch offices, International Department, SBA Department and Financial Services Department of Saehan Bank focus on fulfilling these commitments to customers and shareholders.
Safe Harbor Statement
This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." -0- *T Saehan Bancorp Condensed Balance Sheet (Dollars in thousands) March 31 ———————————- 2008 2007 —————- —————- Assets: Cash & due from banks - demand 20,594 11,425 Due from banks-interest bearing 1,022 3,979 Federal fund sold 43,745 10,540 Securities available-for-sale 47,897 55,161 Loans 728,568 573,729 Less: Allowance for loan losses 8,311 5,911 Net loans 720,257 567,818 Loans held for sale 3,208 7,656 Bank premises and equipment, net 7,086 6,449 Other assets 17,472 13,333 Total assets 861,281 676,361 Liabilities and stockholders' equity: Deposits: Noninterest bearing demand 130,756 120,615 Interest bearing demand and savings 155,754 151,600 Time deposits 375,897 266,228 Total deposits 662,407 538,443 Jr. Subordinated debenture 20,619 20,619 Other borrowed money 110,280 57,000 Other liabilities 5,389 5,860 Total liabilities 798,695 621,922 Total stockholders' equity 62,586 54,439 Total liabilities and stockholders' equity 861,281 676,361 Book value per share 5.60 4.90 Period end shares outstanding 11,160,737 11,089,824 Nonperforming loans 15,642 2,356 Tier I leverage ratio 10.31% 11.32% Tier 1 risk-based capital ratio 10.63% 12.02% Total risk-based capital ratio 11.75% 13.33% Saehan Bancorp Condensed Income Statement and Comprehensive Income (Dollars in thousands except per share data) For the three months ended March 31 ———————————- 2008 2007 —————- —————- Interest income: Interest and fees on loans 13,441 12,315 Interest on securities 526 574 Interest on federal funds sold 92 24 Other interest income 101 10 Total interest income 14,160 12,923 Interest expense: Deposit 5,736 4,863 Other 1,292 822 Total interest expenses 7,028 5,685 Net interest income before provision for loan losses 7,132 7,238 Provision for loan losses 1,081 660 Non-interest income: Service charges on deposit accounts 600 476 Gain on sale of loans 194 984 Gain on sale of investment securities - - Other operating income 620 499 Total non-interest income 1,414 1,959 Non-interest expense: Salaries and employee benefits 3,352 3,806 Net occupancy and equipment expense 1,152 942 Other operating expense 1,457 1,668 Total non-interest expenses 5,961 6,416 Income before income taxes 1,504 2,121 Income taxes 579 769 Income before extraordinary items 925 1,352 Extraordinary items, net of taxes - - Net income 925 1,352 Net income per share - Basic $0.06 $0.12 Diluted $0.06 $0.12 Basic average common shares outstanding 11,160,737 11,089,750 Diluted average common shares outstanding 11,172,270 11,249,151 Charge offs 1,044 231 Recoveries 25 4 For the three months ended March 31 ———————————- 2008 2007 —————- —————- Key Operating Ratios: Return on average assets 0.46% 0.84% Return on average equity 5.93% 10.52% Yield on earning assets 7.24% 8.34% Cost on interest bearing liabilities 4.53% 4.83% Net interest margin 3.64% 4.67% Cost of funds 3.80% 3.88% Efficiency ratio 69.75% 69.76% *T
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